China ramps up coal, steel output cuts this year to defend 'blue skies'

In a work report at the opening of the annual meeting of parliament, the National Development and Reform Commission (NDRC) said it will reduce steel capacity by around 30 million tonnes and coal output by about 150 million tonnes this year.REUTERS | March 05, 2018, 07:51 IST

BEIJING: China will cut more steel and coal production capacity this year, the state planner said on Monday, putting the country on track to beat its long-term targets as the government pledged to defend its "blue skies".

In a work report at the opening of the annual meeting of parliament, the National Development and Reform Commission (NDRC) said it will reduce steel capacity by around 30 million tonnes and coal output by about 150 million tonnes this year.

The government also said it will shut coal-fired power plants with capacity of less than 300,000 kilowatts that fail to meet standards in 2018.

The plan came as Premier Li Keqiang said in prepared remarks the government will consolidate the gains made in the fight against pollution to defend the "blue of our skies".

The report underscores China's determination to ramp up its environmental crackdown, supply-side reform and efforts to upgrade its dominant fossil-fuel energy structure by cutting coal consumption and boosting cleaner energy.

Last month, Beijing said it aimed to meet its target for reducing steel production capacity two years earlier than planned, as the world's top steel producer ramps up its years-long push to reduce excess output.

The original plan called for reducing 150 million tonnes of steel production capacity by 2020.

The world's top coal consumer cut 250 million tonnes of capacity last year, taking the total since 2016 to 460 million, almost hitting its 2020 target of 500 million tonnes.